Exploring the institutional implications of the development of SEZs

Aymeric Mariette (second from right) with UTAR staff

A talk titled “Government to Government (G2G) Special Economic Zones (SEZs) developed by Chinese Companies in Southeast Asia: An Institutional Perspective” was organised by UTAR Institute of Management and Leadership Development (IMLD) and Belt and Road Strategic Research Centre (BRSRC) on 13 June 2023 at UTAR Sungai Long Campus.

Invited to speak at the talk was Aymeric Mariette, a doctoral student in political economy at the Université Paris Cité and a member of the laboratories of the Centre for Social Sciences Studies on the African, American and Asian Worlds (CESSMA) and Centre for Southeast Asian Studies (CSEAS).

In recent years, the development of SEZs by transnational corporations in G2G frameworks has become an increasingly common means of conducting foreign direct investment (FDI) globally. Southeast Asia is among the most affected locations, as countries in the region compete to attract FDI from neighbours in Northeast Asia, particularly China. Hence, the talk aimed to explore the institutional implications of the development of SEZs, in particular by examining the strategies of the involved parties.

“SEZs are delimited geographical areas offering regimes and regulatory frameworks that differ from the rest of the country in order to attract companies and foreign investments,” Aymeric Mariette explained.

Aymeric Mariette

In his talk, Aymeric Mariette addressed the French regulation school in institutional economics, and the mesoeconomic approach. He mentioned that the French regulation school define regulation as ensuring the correct functioning (of a complex system). He also spoke about institutional complementarity and institutional hierarchy which are the key concepts of the French regulation school in institutional economics. The French regulation school in institutional economics consists of five institutional forms, which are competition conditions, state, monetary and financial regime, wage-labour nexus, and modes of international integration. He also introduced the participants to a few books that would enhance their understanding of the topic. The books included “The Regulation School: A Critical Introduction” by Robert Boyer, and “The Diversity of Modern Capitalism” by Bruno Amable, to name a few.

Aymeric Mariette concluded his talk by sharing his research studies, which focused on social labour relationships, competition and product definition, and futurity using the mesoeconomic approach for his research on Sihanoukville SEZ and Malaysia-China Kuantan Industrial Park.

The talk ended with a fruitful Q&A session and a group photograph.

IMLD Director and BRSRC Chairperson Prof Dr Cheng Ming Yu (left) presenting a token of appreciation to Aymeric Mariette